RBC and BMO explore $2 billion sale of Canadian payments venture Moneris
Moneris represents one of Canada's largest payment processors, handling one in every three business transactions nationwide. The company was established in 2000 as a joint venture between RBC and BMO, providing digital, mobile, and in-store payment systems for approximately 325,000 merchant locations across Canada.
Also read:
Economist PM Mark Carney's big shock - Canada loses 41,000 jobs in July as youth unemployment hits 14-year
The banks are in early stages of exploring a potential
Moneris sale
, according to four people familiar with the matter who requested anonymity due to the private nature of discussions. Investment banking firms advising on the potential transaction include boutique firm PJT Partners, along with RBC Capital Markets and BMO Capital Markets.
Moneris valuation based on revenue performance
Sources estimate Moneris could achieve a $2 billion valuation, or slightly below that threshold, based on the company's annual revenue generation of nearly $700 million. The revenue-based valuation reflects standard industry multiples for payment processing businesses.
Live Events
However, completion of a sale remains uncertain, with sources indicating the bank owners could ultimately decide to retain some or all of the Moneris business operations. The potential transaction represents one of the larger Canadian fintech deals under consideration.
Banking industry payments divestiture trend
The potential Moneris sale aligns with broader trends in the North American banking sector, where financial institutions have increasingly divested payment processing operations. Banks have found the pace of digitization requires regular capital investments to maintain competitive positioning in the payments landscape.
Payment processing companies have emerged as willing acquirers, seeking to expand geographic reach and enhance product offerings through mergers and acquisitions. Private equity firms also represent active buyers, attracted by the recurring fee revenue streams that characterize payments businesses.
Recent industry activity includes TD Bank's announcement last month of a strategic partnership with Fiserv regarding its Canadian merchant payments operations, demonstrating continued consolidation in the sector.
Also read:
Canada's economy flexes while everyone freaks about tariffs, so no rate cut for you for now!
Market response and industry context
BMO, Moneris, and PJT Partners declined to provide comments regarding the potential sale discussions. RBC did not respond to requests for comment about the transaction.
The Canadian payments processing market has experienced significant growth driven by increased digital adoption and electronic transaction volumes. Moneris's market position, processing approximately 33 per cent of Canadian business transactions, positions the company as a valuable asset for potential acquirers.
Payment processing businesses typically generate stable revenue through transaction-based fees, making them attractive targets for investors seeking predictable cash flows. The recurring nature of merchant relationships provides additional stability for payment processors like Moneris.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
It's all about numbers: Mumbai gets first privately-funded institute for math research
Mumbai: India, said Fields medallist Manjul Bhargava, must fall in love with mathematics again. Not as a "drudgery of formulas" but as an act of "exploration." Bhargava, Canadian by nationality but of Indian origin, believes classrooms need an overhaul—"experimental, playful," he said, with teachers "trained" to spark curiosity. Speaking to TOI on the sidelines of the launch of the Lodha Mathematical Sciences Institute (LMSI), he added: "I'm happy with the new textbooks and the changes brought in them. But they will only show impact in a few years." On the scientific advisory council of LMSI, Bhargava will lead sessions on arithmetic statistics, its new developments, and future directions. State cabinet minister Mangal Prabhat Lodha called it a school "not for an individual, not for a business, but for the nation that always prioritised knowledge over all and for India that gave so much math to the world." You Can Also Check: Mumbai AQI | Weather in Mumbai | Bank Holidays in Mumbai | Public Holidays in Mumbai | Gold Rates Today in Mumbai | Silver Rates Today in Mumbai Entirely devoted to post-doctoral research, LMSI is India's first privately funded mathematics institute, backed by the Lodha Foundation with a Rs 20,000-crore endowment. "We realised that for any nation to become strong, we ought to have original thinking and promote innovation," said Abhishek Lodha, CEO and MD of Lodha Developers. The privately funded mathematics research institute in the country is completely free, he added. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Could This NEW Collagen Blend Finally Reduce Your Cellulite? Vitauthority Learn More Undo Founding director V Kumar Murthy—who earlier led Toronto's Fields Institute—described math as the hidden scaffolding of modern life: the foundation for finance, engineering, and technology. Economist Nachiket Mor, also on the advisory panel, noted that models built in the West often collapse in India because they rarely account for "unique characteristics" like limited liquidity and higher viscosity of adjustment. "This reality makes it all the more urgent for us to build deep capacity mathematics," he said. Murthy explained that LMSI would begin not with students but with teachers. Ten senior number theorists—working in a field almost untouched in India—have been chosen to seed the effort. Faculty will return to their classrooms with fresh knowledge, passing it on. As President, Murthy said he plans to travel across the country, meeting mathematicians firsthand and mapping who is doing what. The aim is to build a network where the "brightest minds" are spotted early, handpicked, and nurtured—whether a graduate is on the verge of a breakthrough or a scholar is trying to prove a theorem. By December 2026, LMSI will host the first Indian Congress of Mathematicians, showcasing contributions of mathematicians of Indian origin worldwide. Ashish Singh, former chief secretary of Maharashtra and now chief mentor of the Lodha Foundation, said the idea of LMSI grew from parents failing to convince children that mathematics is foundational to all STEM knowledge. The institute, he stressed, is one where scholars can do pure research—"no onerous administrative responsibilities, no responsibility of teaching. There's no other responsibility other than the responsibility of pushing the boundaries of knowledge itself. " Inviting those for whom mathematics is a calling, Singh spoke of those who see "symmetry in numbers," find "beauty in logic," and dream like Ramanujan "standing on the shore of the infinite." The big dream, he added, is for an Indian to win a Fields Medal in the next decade—or perhaps to nurture someone who "looks up from his chalkboard and glimpses the truth no one else has seen, some elegant, exact, and entirely human moment of insight. " Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Time of India
2 hours ago
- Time of India
MSMEs cry for survival, demand separate ministry
Ludhiana: Micro industries, which account for nearly 99% of India's total industrial base, are on the verge of collapse due to what industry leaders describe as "discriminatory policy changes" and "unrealistic definitions" under the MSME framework. Representatives from the World MSME Forum have warned that unless a separate ministry is created for micro units, nearly one crore micro industries could shut down within the next two years. In a letter to PM Narendra Modi, World MSME Forum president Badish Jindal stated that despite being the largest employment provider after agriculture, micro industries remain constrained by finance, infrastructure gaps, delayed payments, and lack of institutional support. "The sickness is increasing in the micro sector. If the govt does not intervene with a separate policy, crores of industries will close down," he warned. According to the Forum, 90% of govt procurement benefits meant for MSMEs are cornered by just 0.3% of enterprises, leaving the vast base of micro industries excluded. With limited access to credit and markets, these firms are further squeezed by the dominance of large corporate houses in retail. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Canada is looking for skilled immigrants from Jamaica! Canadian Visa Professionals Learn More Undo "Big companies purchase goods in bulk from medium and large industries, while micro industries lose out on sales. Even raw materials are cheaper for bigger players due to bulk buying, making their products more competitive," the letter highlights. One of the key issues flagged is the govt's decision to align India's MSME definitions with those of Europe and England. In Europe, a micro enterprise is defined as having a turnover of up to 2 million euros (around Rs 20 crore), small industries up to 10 million euros (Rs 100 crore), and medium enterprises up to 50 million euros (Rs 500 crore). "In India, where the currency value is 100 times lower, applying the same definition is unjust. This has been done under a conspiracy that dilutes the identity of micro industries, pushing them into unfair competition with much larger enterprises," Jindal said. Until June 2020, the investment limit for micro industries was Rs 25 lakh in plant and machinery and turnover up to Rs 5 crore. However, the govt revised the limits multiple times. From July 2020, the ceiling was raised to Rs 1 crore in investment and Rs 5 crore in turnover for micro units. From 2025, the thresholds will increase further to Rs 2.5 crore investment and Rs 10 crore turnover. Similarly, the upper limit for small industries has been expanded from Rs 5 crore investment and Rs 50 crore turnover to Rs 25 crore investment and Rs 100 crore turnover. Medium enterprises now enjoy a ceiling of Rs 125 crore investment and Rs 500 crore turnover. "In five years, the govt has inflated the MSME definition by 10 times, leaving genuine micro industries to compete with much bigger players under the same bracket," Jindal said. Data cited by the Forum shows that India has 6.57 crore registered micro industries, 4.77 lakh small industries, and just 35,760 medium industries. Collectively, MSMEs provide 18.36 crore jobs, of which 16.3 crore are generated by micro enterprises alone. Despite this, exports from micro industries remain negligible. Out of total small industry exports worth Rs 29,876 crore, micro industries account for just Rs 4,547 per unit on average, compared to Rs 1.41 crore per medium enterprise. The financial stress is also visible in bank loan defaults. The NPA of 6.57 crore micro industries stands at Rs 52,519 crore, or Rs 7,993 per businessman, while small industries account for Rs 19,677 crore in NPAs (Rs 4.12 lakh per businessman) and medium industries Rs 8,553 crore (Rs 23.92 lakh per businessman). The Forum has urged the govt to create a dedicated micro industry ministry to address the specific concerns of the sector. "Your govt calls itself a well-wisher of small industries. It is your responsibility to prevent crores of enterprises from closing down," the letter to the PM states. Without immediate corrective measures, industry leaders caution, India risks losing the backbone of its employment generation base. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Indian Express
5 hours ago
- Indian Express
Air Canada union says flight attendants will continue strike, defy government
Air Canada flight attendants said on Sunday they will remain on strike and challenge a return-to-work order they called unconstitutional, defying a government decision to force them back to their duties by 2 p.m. ET (1800 GMT). Air Canada had said it planned to resume flights on Sunday evening, a day after the Canadian government issued a directive to end a cabin crew strike that caused the suspension of around 700 daily flights, stranding more than 100,000 passengers. Thousands of Air Canada flight attendants walked off the job on Saturday for the first time since 1985, after months of negotiations over a new contract. The Canadian Union of Public Employees said in a statement that members would remain on strike and invited Air Canada back to the table to 'negotiate a fair deal.' Air Canada and a Canadian government spokesperson were not immediately available for comment. The country's largest carrier had said some flights would still be canceled over the next 7-10 days as the schedule stabilizes and returns to normal. It had started cancelling flights on Friday in anticipation of the stoppage. The Canadian Industrial Relations Board ordered Air Canada to resume operations and all Air Canada and Air Canada Rouge flight attendants to return to their duties. The CIRB was acting on a directive from Jobs Minister Patty Hajdu as the government moved to end the strike and require binding arbitration to break a contract impasse, an action that Air Canada had previously sought from Prime Minister Mark Carney's minority Liberal government but unionized flight attendants fiercely opposed. The most contentious issue in the contract negotiations has been the union's demand for compensation for time spent on the ground between flights and when helping passengers board. Attendants are now largely paid only when their plane is moving. CUPE had pushed for a negotiated solution, saying binding arbitration would take pressure off the airline. Air Canada said on Sunday that the CIRB had ordered the terms of the collective agreement between the union and the airline that expired on March 31 be extended until a new agreement can be reached.
